Arch Resources Inc (ARCH) Stock Fundamental Analysis
USA - NYSE:ARCH - US03940R1077 - Common Stock
134.83 USD
+0.94 (+0.7%)
133.13 USD
-1.7 (-1.26%)
We assign a fundamental rating of 6 out of 10 to ARCH. ARCH was compared to 154 industry peers in the Metals & Mining industry. ARCH gets an excellent profitability rating and is at the same time showing great financial health properties. ARCH is valued quite cheap, but it does not seem to be growing. These ratings could make ARCH a good candidate for value investing.
1. Profitability
1.1 Basic Checks
ARCH had positive earnings in the past year.
ARCH had a positive operating cash flow in the past year.
ARCH had positive earnings in 4 of the past 5 years.
ARCH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ARCH's Return On Assets of 7.57% is amongst the best of the industry. ARCH outperforms 80.95% of its industry peers.
ARCH has a better Return On Equity (12.43%) than 80.95% of its industry peers.
ARCH has a Return On Invested Capital of 8.85%. This is amongst the best in the industry. ARCH outperforms 80.27% of its industry peers.
ARCH had an Average Return On Invested Capital over the past 3 years of 29.63%. This is significantly above the industry average of 12.55%.
The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROIC | 8.85% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 6.69%, ARCH is doing good in the industry, outperforming 75.51% of the companies in the same industry.
In the last couple of years the Profit Margin of ARCH has grown nicely.
ARCH's Operating Margin of 7.76% is fine compared to the rest of the industry. ARCH outperforms 62.59% of its industry peers.
In the last couple of years the Operating Margin of ARCH has grown nicely.
ARCH has a Gross Margin (17.11%) which is comparable to the rest of the industry.
ARCH's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% |
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
2. Health
2.1 Basic Checks
ARCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, ARCH has more shares outstanding
Compared to 5 years ago, ARCH has more shares outstanding
ARCH has a better debt/assets ratio than last year.
2.2 Solvency
ARCH has an Altman-Z score of 4.29. This indicates that ARCH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.29, ARCH is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
ARCH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Altman-Z | 4.29 |
ROIC/WACC0.79
WACC11.21%
2.3 Liquidity
ARCH has a Current Ratio of 2.01. This indicates that ARCH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.01, ARCH is in line with its industry, outperforming 46.26% of the companies in the same industry.
A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.41, ARCH perfoms like the industry average, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
The Revenue for ARCH has decreased by -17.03% in the past year. This is quite bad
The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
3.2 Future
ARCH is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -5.93% yearly.
The Revenue is expected to decrease by -7.19% on average over the next years.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.13 indicates a correct valuation of ARCH.
79.59% of the companies in the same industry are more expensive than ARCH, based on the Price/Earnings ratio.
ARCH is valuated cheaply when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of ARCH.
Based on the Price/Forward Earnings ratio, ARCH is valued cheaper than 89.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.53, ARCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARCH is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ARCH is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 6.26 |
4.3 Compensation for Growth
The excellent profitability rating of ARCH may justify a higher PE ratio.
A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
5. Dividend
5.1 Amount
ARCH has a yearly dividend return of 0.74%, which is pretty low.
Compared to an average industry Dividend Yield of 2.61, ARCH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, ARCH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
5.2 History
On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
134.83
+0.94 (+0.7%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners99.38%
Inst Owner Change-16.87%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.13 | ||
| Fwd PE | 6.77 | ||
| P/S | 0.91 | ||
| P/FCF | 11.58 | ||
| P/OCF | 6.2 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 6.26 |
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.57% | ||
| ROE | 12.43% | ||
| ROCE | 10.52% | ||
| ROIC | 8.85% | ||
| ROICexc | 10.16% | ||
| ROICexgc | 10.16% | ||
| OM | 7.76% | ||
| PM (TTM) | 6.69% | ||
| GM | 17.11% | ||
| FCFM | 7.87% |
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.61 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 117.1% | ||
| Cap/Sales | 6.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 108.14% | ||
| Profit Quality | 117.55% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 4.29 |
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%
Arch Resources Inc / ARCH FAQ
What is the fundamental rating for ARCH stock?
ChartMill assigns a fundamental rating of 6 / 10 to ARCH.
What is the valuation status for ARCH stock?
ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.
How profitable is Arch Resources Inc (ARCH) stock?
Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.
What is the valuation of Arch Resources Inc based on its PE and PB ratios?
The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.
What is the earnings growth outlook for Arch Resources Inc?
The Earnings per Share (EPS) of Arch Resources Inc (ARCH) is expected to decline by -81.89% in the next year.